Housing Crisis Still Growing!

by Mark Johnston

Housing crisis still growing!

Soaring property prices and a mortgage famine are having a radical social impact on the way renters live their life.

It therefore seems that Britain’s housing crisis and the resulting rise of a generation locked out of home ownership is destroying community spirit and preventing young people from building careers, forming relationships and starting families, according to research from a thinktank.

Roger Harding, head of policy and research at Shelter, explains: “There is a lack of housing stock, which started in the 1980s with council house sell-offs and councils not being able to reinvest the money in housing; then not enough was built under successive governments”.

Some experts believe that what is clear is that the next generation is going to really struggle to get a stable or affordable home, no matter how hard they work or save.

According to a new report by the Institute for Public Policy Research, the central problem is too little building. If the trends of the past two decades continue, then demand for housing will outstrip supply by 750,000 homes by 2025.

Many housing professionals and strategists are critical of the coalition government’s attempts to boost housebuilding and attracting institutional investment into private rented housing, to help meet housing need. They  therefore fear that  2013 will usher in a new year of rising homelessness with few new properties built.

Recent figures show that the number of people sleeping rough has gone up by 43 per cent in London and by 23 per cent in the rest of England this year alone.

More people are becoming homeless in England as the impacts of cuts to housing benefit start to bite against the backdrop of the continuing economic downturn, with young people and families with children first in the firing line, new research has revealed.

Lead researcher Professor Suzanne Fitzpatrick,: “When we put all the evidence together for the Homelessness Monitor, a summary report, the conclusion was clear: the strain of the economic downturn, combined with radical welfare cuts and growing housing market pressures, means increasing numbers of people are going to become homeless

The Institute if Economic Affairs (IEA), the UK’s free market think tank, stated that “If social housing in Britain is under strain  and it clearly is, it is because the housing market as a whole is under strain”.

Leslie Morphy, chief executive of Crisis, said: “The coalition is sweeping away the safety nets that have traditionally saved people from the horrors of homelessness. Housing benefit, the duties of local councils and the security and availability of social housing are all being cut back”.

 Some housing professional have stated that “We can not persuade private landlords to take on people who are claiming housing benefit as at the moment the private sector does not want to engage, at least in this area”

In line with this particular statement Jack Dromey, member of parliament for Birmingham Erdington and shadow housing minister stated that “ we will be committing to reforming the private rented sector so it works for Britain’s families”


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